Responsible supply chain

We want to ensure our sustainable business operations throughout our supply chain by developing our sustainability management practices in Metso and with our suppliers. We closely follow and comply with the legislation on restricted materials.

Responsbile supply chain

Sustainable supply chain management necessitates that we follow our company values. Metso’s Code of Conduct and sustainable development criteria for suppliers set the standards that we expect our suppliers to follow, and they are the starting point for any new or existing business relationship. To ensure quality and sustainability in our supply chain, we have developed processes covering the whole network of suppliers. We consider sustainability aspects in supplier evaluations to minimize the risks and develop the opportunities related to quality, social aspects, such as human rights, and environmental aspects.

Supplier assessment

We carry out a risk mapping of sustainability-related risks within our existing suppliers. By defining the risk levels, we are able to focus on the suppliers with the highest potential risks in their operations.

For the risk mapping, we utilize a Human Rights Dataset to identify the risk countries related to the categories Human Security, Labor Rights and Protection, Civil and Political Rights, Access to Remedy and Development and Environment. In addition, we also take into account the supplier type and spend. Based on these assessments, we decide if there is a need for third-party or internal sustainability supplier audits.

Screening new suppliers is included in procurement's ongoing processes, and our target is to evaluate the majority of new suppliers in higher-risk countries against our sustainability criteria.

Based on the sustainability risk assessment of the new supplier, procurement decides on the need for an in-depth audit and further actions.

Also take a look at: Sustainability criteria for suppliers

Supplier audits

Annually, Metso conducts 15 third-party sustainability supplier audits together with external auditing partner in higher-risk countries (e.g. China, India, Turkey and Brazil). Metso’s thirdparty audits cover many aspects of sustainability, including HSE, product safety, labor and other human rights, and risk management. We have also started to conduct internal sustainability supplier audits, where Metso Procurement and Quality Assurance make on-site visits and check the sustainability practices and performance of our suppliers.

To improve our suppliers' sustainability performance, after each sustainability supplier audit, we agree on corrective action plans together with the supplier. Suppliers are required to provide Metso with evidence of the corrective actions that have been implemented and are subjected to a re-audit, where necessary. The focus is to increase the sustainability knowledge of our procurement function so that it has the ability to control the potential corrective actions comprehensively.

Conflict minerals

Metso acknowledges increasing concern related to the human rights issues of sourcing ores and metals from areas of conflict. Metso is currently not affected by the conflict minerals regulations, and our products also do not affect our customers’ performance with regard to the regulations. Metso is nevertheless committed to conducting business in a sustainable manner and considering laws and regulations as only the absolute minimum. In line with our commitments, we do not knowingly source any materials that contribute to any human rights violations, and we expect the same behavior from our suppliers.

To clarify Metso’s position on conflict minerals, Metso has issued a public position statement related to conflict minerals.

In line with our commitments, we do not knowingly source any materials which contribute to any human rights violations, and we expect the same behavior from our suppliers. Metso acknowledges the increasing concern related to the human rights issues of sourcing ores and metals from conflict areas. The concern over conflict minerals has gained increased public attention following regulations published in the US and proposed in the EU.

Metso is currently not affected by the conflict minerals regulations. Apart from individual exceptions, our products do not either affect our customers’ performance with regards to the regulations.

Metso is aware of the complexity of the issue and according to our statement  we, as many of our suppliers, cannot fully confirm the origin of all materials used in our products. We work continuously to better understand the issue and we are committed to helping our suppliers in determining the origin of the materials used in products sold to us.

 Our statement on conflict minerals